Politics and Business
How to Start a Business in Texas: A Quick Guide
In Texas, there are around 2.7 million small businesses in operation. If you’re thinking you want to start a business in Texas, there are a few things you’ll have to keep in mind to be successful.
But what does it take to run a Texas business? There are many steps you’ll need to take to ensure that you’re successful.
Keep reading to learn about how to start a business in Texas.
Write a Business Plan
To start a company, you’ll need to write a business plan. When you have a business plan to follow, you’ll feel more organized and set yourself up for success.
Business plans will help you reach important goals and milestones, and you’ll need some aspects like product development.
This section will help you answer what type of problem your business solves. It’ll dictate which products and services you sell.
You’ll also want to come up with a plan for marketing. You’ll need to identify your target audience, grab their attention, and turn them into buyers.
You’ll also want to keep a list of who will work for your company and what positions you’ll need to hire for.
Lastly, keep track of how much money you’ll need to start your business. How many clients do you need to start making money? Where will you get the funding?
Decide on Business Name
Next, you’ll need to decide on a business name. If you are running a sole proprietorship, then you can have your name be the business name. If you’re not the sole owner, you’ll need an Assumed Name along with a DBA certification.
If you’re struggling to come up with a name, do a quick Google search. You can see if there are any Texas businesses that would bring a conflict with them.
You’ll also want to search for trademarks. Make sure that the name you pick isn’t already registered under the U.S. Patent and Trademark Office.
You’ll also want to check Texas’s business database. Check the Texas Department of State’s database to see which business names are also in Texas. Try to avoid choosing a name that is just like other ones or sounds similar.
It’s hard to change your business name later on down the road, so it’s important to make sure that you spend time choosing the right one.
Apply for Licenses
In Texas, you don’t need to have a general or a business license in Texas. However, you will need three different licenses and permits.
You need to get a sales tax permit, licenses and permits for specific activities, and professional and occupational licenses.
A sales tax permit is important so that you can collect taxes and sell taxable goods.
If you’re an educator or a lawyer, then you’ll also need a professional license. This will mean that you’re meeting the standards you need to be able to hold that license and operate in the state of Texas.
Set Up Your Structure
Next, you’ll need to set up your business structure. You’ll need to register your business with Texas, and you’ll register it as an LLC, nonprofit, or corporation.
When you set up the structure, your business will seem more legit, and you’ll protect yourself from any personal liability in case someone sues the business.
To run a business, you’ll need to organize your finances and make sure you have enough capital to get your business off the ground.
You’ll need to apply for a loan, and lenders will ask you for different things before you approve it. For example, they may ask if you have any commercial investments, what your collateral is, and your current financial statements.
Be prepared with legal papers about your business, the history and description of your business, a plan, and any tax return statements from the past three years.
Market Your Business
One thing you’ll have to spend your capital on is marketing your business. Having a marketing plan will help keep you on track to make sure that your audience finds your services and products.
You’ll also want to include an executive summary that will control your plan. A mission statement will also outline how you’re going to reach those goals through marketing.
You’ll also want to identify your business’ strengths, weaknesses, opportunities, and threats. This analysis will help you figure out what you’re doing right and where you need to focus your efforts.
Check on Workforce Requirements
If you’re going to need to hire people for your business, you’ll want to make sure that you have all the right licenses as well.
You’ll need to meet tax, safety, labor, and tax obligations before you can hire people. You’ll need to follow the Americans with Disabilities Act, Equal Employment, and other labor requirements.
If you don’t have much experience in this area, you might want to hire a business attorney to ensure that you’re not breaking any rules.
You’ll also have to make sure that you check Texas’s full state handbook. For example, in Texas, you most likely won’t need to have private business compensation insurance. However, it can still help to protect you and your business.
Learn More About How to Start a Business in Texas
These are only a few strategies to keep in mind when you want to start a business in Texas, but there are many other factors to consider.
If you’re serious about making sure that your business succeeds, you may also need a consultant.
Check out our website for more information on starting a business and making sure that it runs successfully.